The price of imported goods from China in the European Union (EU) has been declining since 2023, writes Diena.
At the same time, import volumes from this country, after a decline in 2023, significantly increased in the third quarter of 2025 and even exceeded the peak level of 2022.
China is the third largest trading partner of the EU in exports (8.3%) and the largest partner in imports (21.3%). As noted by the chief economist of Swedbank, Liva Zorgenfreya, the decline in prices for Chinese goods is not unique to Europe, but reflects a broader trend of declining prices for exported Chinese goods over nearly three years. According to the economist, an additional reason for the price decline over the past year has been the tariffs imposed by the US, which limit China's ability to sell goods to that country, resulting in a nearly 28% decrease in China's exports to the US last year. However, by offering very attractive prices, China has managed to maintain overall export growth, increasing supplies to other markets, including the EU, where growth exceeded 10%. This pricing policy of China is bad news for European manufacturers.
"China is expanding, especially in Asian countries, as well as in Europe, while China's exports to the US will decrease due to tariffs. And this is just the beginning, as China's economy and domestic demand are no longer growing as quickly as before. This means that the domestic market is no longer able to absorb production capacities and released products to the same extent as before. Therefore, China's desire to export will be even stronger, and it is already a major exporter on a global scale. China will aggressively push into all markets wherever it can," predicts the head of the monetary policy department of the Bank of Latvia, Uldis Rutkaste.
Currently, China has transformed from a producer of cheap goods into a supplier of technologically advanced, high-quality products and a serious competitor for European manufacturers of high-tech goods.
